European plane maker Airbus SE said on Wednesday that it would cut production of its flagship A380 superjumbo commercial plane and the A400M military transport aircraft due to weak demand, according to a report by Dow Jones Newswires supplied to Efe.
The reduction in output plans is due to take effect from 2020 and will impact about 3,700 jobs, the company said in a statement. It also said it would try to shift most of those employees to work on booming plane programs.
Airbus has had to repeatedly cut output plans for the A380 because of a lack of orders for the plane.
It said it plans to build six planes a year starting in 2020.
Emirates Airline, the world's largest international airline by traffic, last month said it would buy up to 36 more of the A380 superjumbos. That deal allows Airbus to sustain A380 production at what it described as a minimum production rate for several years while minimizing losses.
A400M production would be reduced to 15 planes this year, 11 in 2019, and eight thereafter, according to the Dow Jones report.
Airbus Chief Financial Officer Harald Wilhelm said last month that lowering build rates for both plane models would stretch the time the aircraft are in production and buy time to win new orders, without which Airbus is at risk of losing money on both plane programs.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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